15A NCAC 02O .0204. AMOUNT AND SCOPE OF REQUIRED FINANCIAL RESPONSIBILITY

(a)  Owners or operators of petroleum underground storage tanks located in North Carolina must demonstrate financial responsibility for at least one million dollars ($1,000,000) per occurrence for taking corrective action and for compensating third parties for bodily injury and property damage caused by accidental releases arising from the operation of petroleum underground storage tanks.

(b)  Compliance with all laws, rules, and regulations relating to the Commercial Leaking Petroleum Underground Storage Tank Cleanup Fund shall constitute demonstration of financial responsibility for that amount specified in Paragraph (a) of this Rule which is in excess of the sum of the amounts required to be paid per occurrence by the owner or operator for cleanup and for third‑party claims.

(c)  Owners or operators of petroleum underground storage tanks located in North Carolina must demonstrate financial responsibility for taking corrective action and for compensating third parties for bodily injury and property damage caused by accidental releases arising from the operation of petroleum underground storage tanks in at least the following annual aggregate amounts:

(1)           For owners or operators of one to 100 petroleum underground storage tanks, one million dollars ($1,000,000); and

(2)           For owners or operators of 101 or more petroleum underground storage tanks, two million dollars ($2,000,000).

(d)  If all laws, rules, and regulations relating to the Commercial Leaking Petroleum Underground Storage Tank Cleanup Fund are complied with, the owner or operator may meet the financial responsibility requirements of Paragraph (c) of this Rule by providing an annual aggregate financial assurance of at least the sum of the amounts specified in Subparagraphs (d)(1), (2), and (3) of this Rule as follows, in addition to the assurance provided by the Commercial Fund:

(1)           The average maximum amount required to be paid by an owner or operator per occurrence for cleanup as determined in accordance with Paragraph (e) of this Rule;

(2)           The average maximum amount required to be paid by an owner or operator per occurrence for third party claims as determined in accordance with Paragraph (e) of this Rule; and

(3)           Three percent of the multiple of:

(A)          the amount in Subparagraph (d)(1) of this Rule; and

(B)          the number of tanks being covered.

(e)  An owner or operator providing financial assurance for more than one underground storage tank where the various tanks do not all require the same maximum amounts to be paid per occurrence for cleanup and/or third party claims shall calculate an average maximum amount to be paid per occurrence as follows:

(1)           Determine the maximum amount to be paid per occurrence for each underground storage tank being assured;

(2)           Sum the values determined in Subparagraph (e)(1) of this Rule and divide by the number of underground storage tanks being assured.

(f)  Owners or operators shall annually review the amount of aggregate assurance provided.  The amounts of required financial responsibility and annual aggregate assurance shall be adjusted at the time of the review to that required in Paragraphs (a), (b), (c), and (d) of this Rule.  All changes in status, including installations and closures, shall be reported to the Department, and all fees due shall be paid in accordance with applicable laws, rules, and regulations.

(g)  If an owner or operator uses separate mechanisms or separate combinations of mechanisms to demonstrate financial responsibility for different petroleum underground storage tanks, the annual aggregate required shall be based on the number of tanks covered by each such separate mechanism or combination of mechanisms.

(h)  The amounts of assurance required under this Rule exclude legal defense costs.

(i)  The required per‑occurrence and annual aggregate coverage amounts do not in any way limit the liability of the owner or operator.

(j)  Assurance for petroleum underground storage tanks located in North Carolina must be provided separately from that provided for petroleum underground storage tanks not located in North Carolina.

 

History Note:        Authority G.S. 143‑215.94H; 143‑215.94T;

Eff. July 1, 1992.